EL7.AI
StocksMedium•24 October 2026•
4 min read

$420 Million Indonesian Contract Boosts Seadrill’s 2027 Rig Coverage

Key Facts

1The base term of the West Carina contract in Indonesia is worth approximately $420 million.
2Contracted drilling days for 2027 exceed 85% of available days across the fleet.
3West Capella operations were extended by 120 days worth approximately $41 million, followed by another 120 days worth approximately $53 million.
4Operations of the Sonangol Libongos extend through January 2030 after an extension of about 3 years.

Seadrill announced on October 12 a contract for the West Carina rig in Indonesia with an unnamed operator, worth approximately $420 million for the base term, including mobilization fees and excluding additional services. The company estimates the base contract term at approximately 880 days, with the program set to begin in the first half of 2027. The agreement includes priced options for up to 880 additional days, but these remain options and do not represent a confirmed operating term. Chief Executive Officer Samir Ali said the contract achieves a strategic objective of repricing three legacy contracts to current market levels. He added that activity in Southeast Asia is increasing.

In Malaysia, the company extended West Capella’s operations by adding 120 days from the remaining priced options, worth approximately $41 million. It then added another 120 days through options that had not previously been priced, adding approximately $53 million. Seadrill expects the rig to continue operating through February 2028. These figures detail the value of the days added in the Malaysian extension, while the statement did not disclose dayrates. This places part of the fleet’s operations beyond next year.

In Angola, operations of the Sonangol Libongos were extended by about three years after all remaining priced options were exercised, with a commitment to operate the rig through January 2030. The extension was awarded to Sonadrill, the 50-50 joint venture between Seadrill and a subsidiary of Sonangol. The company did not announce the value of the extension or the contract dayrate. This differs from the West Carina contract, for which the company announced the value and base term, and from the West Capella extension, for which it tied specific amounts to the added days. The January 2030 date is the furthest announced extension among the contracts and extensions in the October statement.

The announcements also included a short-term contract for the Sevan Louisiana rig with Kosmos in the U.S. Gulf of Mexico, lasting 25 days, with operations expected to begin in November 2026. The company said more than 85% of available drillship days across its fleet were contracted for 2027, strengthening revenue visibility for that year. This coverage level follows previous additions to the backlog; in May, the company said its backlog stood at $3.1 billion after adding more than $860 million since its February fleet report. It also announced in May a three-year extension for the West Polaris with Petrobras in Brazil, starting in January 2028 and adding approximately $480 million to the backlog. The new contracts and extensions give the company operational coverage from 2027 through 2030, with announced terms and values varying from one agreement to another.

Seadrill raised its 2026 revenue forecast in August to a range of $1.50 billion to $1.55 billion, from a previous range of $1.43 billion to $1.48 billion. It also raised its adjusted EBITDA forecast range to $420–450 million, compared with $370–420 million previously. In its first-quarter results, the company reported a net loss of $7 million and operating revenue of $358 million. The chief executive said at the time that demand for deepwater rigs was supported by customers and regions across the market, and that the company saw factors supporting improved dayrates through 2027. Seadrill cited volatile oil prices, supply and demand conditions and dayrates, as well as customer payment delays or disputes, among its risk factors.

EL7 data provided showed SDRL shares closed at $52.35 on October 23, 2026. The data did not include the share-price change, while the company statement did not mention a share-price move following the announcement. The contract-related figures remain limited to what the company disclosed: the value of West Carina’s base term, the value of the days added to West Capella, and the rigs’ expected operating dates. West Carina’s additional options extend to 880 days, but they are not part of a confirmed or completed term. The next timeline milestone in the announcement is the expected start of the West Carina program in the first half of 2027.